New Postal Savings Account From Cheshire Building Society
Published: 1 November 2010
By Diane Ray Leave a Comment
Updated: 1 November 2010
Cheshire Building Society has a new 30 day notice savings account offering savers an interest rate of 2.60% gross p.a./AER (variable).
The savings account interest rate includes a 1% gross p.a. bonus for 12 months, if they keep a balance of at least £1,000.
The account requires a minimum investment of £1,000 to open. Up to £2 million can be deposited with no limit on the number of additional deposits made as long as the maximum account amount is not exceeded.
With no restriction on the number of deposits that can be made, it makes the savings account suitable for regular savers, particularly if they set up a standing order.
Customers can make up to four withdrawals a year without loss of interest, providing 30 days notice is given.
Darren Bailey, Head of Product Management for Cheshire Building Society, said: “In uncertain economic times people want a safe home for their savings that pays them a good rate of return and actually encourages them to save. But they also want the peace of mind of knowing they can access their money when they need it.
He added the “30 Day Postal Saver Account gives people a great rate of 2.60% gross p.a./AER (variable) whilst also giving them the freedom to save more when they can and make up to four withdrawals a year without loss of interest if they give 30 days notice.”
The 1% gross p.a. bonus is payable on the first anniversary of the account opening, providing the account is not closed early, the balance does not fall below the minimum of £1,000 at any time, and no more than four 30 day notice withdrawals are made each year.
Whilst the account must be opened with a cheque by post, additional deposits can be made by cheque and other payment methods including BACS and standing orders.
Withdrawals are by cheque following 30 days notice and savers must make a minimum withdrawal of £250, with a total of four withdrawals allowed each year without loss of interest.
Interest, paid annually, can either be paid back into the Account, to another Cheshire account or into any other UK building society or bank account.
After the first anniversary of opening, the interest rate will move to a variable rate of 1.60% gross p.a./AER (with no bonus paid).
Making more than four withdrawals a year or letting the balance on the account fall below the minimum £1,000 has significant consequences – the interest rate will convert to a fixed interest rate of 0.10% gross p.a./AER, which will remain in place for the lifetime of the account, and no bonus will be paid.
As a postal savings account, savers can request an application form by calling the Cheshire Building Society’s Contact Centre on 0845 605 4157, or by visiting www.thecheshire.co.uk.